How Much Does Indie Game Development Cost in 2024?

1. Experience

Indie game development is a trade-off between time and cost. With a significant portion of the industry (According to the Survey by GDC’s 2024 State of the Game Industry, 32% of developers in 2023 reported working for indie game studios), it’s no surprise that hands-on experience is becoming increasingly valuable. Hands-on experience with game development tools, engines, and cutting-edge technology will be a great advantage when developing your game.

This will help save game development time, expedite the development, and reduce expenses. However, if you do not have prior experience in game development, you might need additional time to understand the game development process.

2. Team size and composition

Team size can significantly impact the cost of making an indie game. With a single developer or a small team, costs are lower, but the trade-off is extended development time, as each individual may take on multiple roles. Larger teams or hiring professionals for specialized tasks like voice acting or music composition can improve the game’s quality but drive up the indie game budget.

3. Art and design

Not having experience in game art may require you to hire a skilled game artist, which will add to the cost of making an indie game. However, learning the necessary skills yourself, especially as an indie game maker, costs time and money.

4. Type of game

Indie video game companies categorize games into small-scale, mid-scale, and high-end. The type of game you choose to develop will heavily impact the game development cost.

Small-scale indie games

One or two developers develop most small-scale indie games, usually self-funded, with simpler graphics and unique gameplay mechanics. These games typically operate on a lower indie game budget than more extensive projects.

Mid-scale indie games

A few developers develop mid-scale indie games with slightly polished graphics, deeper gameplay mechanics, and potentially longer development cycles. They require a more detailed budget, usually through crowdfunding or similar funds.

Another popular approach for indie developers is leveraging Early Access. This provides a source of funding and allows developers to receive invaluable player feedback during development. Games like Vampire Survivors used this model to make improvements before the final release.

High-end indie games

High-end indie games have impressive graphics, a captivating environment, complex mechanics, and innovative gameplay. Developing them will cost more time, money, innovative technology, and human resources.

For a game with such a huge budget, an indie game developer has to look for other game funding sources, such as project and VC funding. Also, in some countries, the government offers indie game development funding through grants or tax relief, which is a viable option.

Additionally, the game development cost of indie mobile games can vary for PC and console platforms, as they have different OS, software, and hardware configurations.

5. Marketing and distribution

Most indie game developers do not include marketing costs in their game budgets. However, they must make a significant investment to reach a wider audience. According to some experts, nearly 25% to 50% of the total game budget is spent on marketing and promotional activities in many popular games. Although every game doesn’t need to spend that much, frequent marketing campaigns can help drive people to your game.

Creative marketing strategies, such as leveraging social media, building a solid online presence, and engaging with gaming communities, can amplify your reach without breaking the bank. For example, advertising on gaming websites or running cost-effective ad campaigns can help attract a global audience.

Marketing and distribution significantly influence the budget of video game creation, encompassing advertising, public relations, event participation, packaging, digital storefront fees, and localization efforts. Distribution costs are equally important, ensuring the game is accessible to its intended audience.

While indispensable, these costs considerably impact developers’ budgets and must be carefully planned to maximize both reach and profitability.

6. Hardware, localization, and other hidden expenses

Below are some obvious hidden costs in game development.

Hardware

Indie game developers sometimes underestimate the hardware cost requirements. Dev tools, high-end computers, and devices for game testing are necessary hardware for game production and testing.

Localization

Localization is crucial for reaching a broader audience. Hiring experienced professionals ensures your game is appropriately localized for different regions, contributing to the overall indie game development cost.

QA and testing

Quality assurance and testing should be an iterative process where you test the game multiple times on various devices and gaming platforms to ensure its performance and functionality. You must release the game with proper testing to prevent errors and technical problems during the gameplay.

Cross-platform integration and game porting

Cross-platform integration and game porting help you reach a broader audience base.

For instance, Android and iOS are the most popular mobile platforms, and their app stores contain millions of games. Through cross-platform integration, your game will be simultaneously available for Android and iOS players, uniformly reaching both audiences.

By outsourcing a game porting service, you can port your games from PC to mobile devices, from mobile to consoles, or vice versa. This helps you reach a wider audience and increases your revenue.

Platform charges

Gaming platforms charge nearly 10% to 30% of the total profit. For example, PlayStation, Xbox, and Steam take a 30% cut from a game’s sales. These fees vary depending on the platform, adding to how much it costs to make a video game for multiple platforms.

In addition to profit sharing, video game companies must also account for distribution fees. Platforms like Google Play Store, Apple Store, and Steam charge a small registration fee, which must be paid before using their services, contributing to the overall development cost.

Intellectual property rights

A significant hidden cost for indie video game companies is securing intellectual property (IP) rights. It’s easy to overlook, but safeguarding your game’s art, music, and designs is essential to protect against copycats. Ensuring your IP rights are secured not only prevents unauthorized use but also protects the long-term value of your game, which is vital when considering how much it costs to make an indie game.

7. Game insurance

Game insurance is a necessary expense that an indie game development company may not consider. Many insurance plans include general liability, cyber security, employee insurance, errors and omissions, public and product liability, and others.

For instance, you will need employee insurance as part of their compensation package if you hire employees. This can be critical in protecting your company in the event of employee disputes or sudden resignations, adding to how much it costs to develop an indie game. You can secure insurance directly or talk to an insurance broker

8. Post-launch support

Ongoing development efforts focus on fixing bugs, adding new content, and enhancing game features. This continuous investment is necessary to ensure the game remains engaging and functional for players. Regular updates and patches help to address any issues players encounter, introduce new features to keep the game fresh, and respond to community feedback.

Providing effective customer support is another critical aspect of post-launch success. Managing player inquiries, addressing technical issues, and fostering a positive community is essential for long-term player retention. Long-term support costs should still be considered when estimating the average indie game budget.

They are called hidden costs for a reason. These costs are not huge, so you may ignore them during your indie game budget planning. Sometimes, you might not notice them until you deal with them.

It’s also essential to account for business development costs. Community management, event planning, and admin tasks (such as insurance and transaction fees) can add up. Staffing costs like salaries and insurance contributions for employees or freelancers are often overlooked but must be factored into the overall budget.

The COO of Bithell Games, Alexander Sliwinski, asks you to set aside 20% to 30% percent of your game development budget to decide unforeseen expenses because you cannot avoid them. You can do a few things to handle the hidden costs of a game.

Plan the game development process

Comprehensive planning at the outset can help identify potential pitfalls and allocate resources efficiently. Indie game studios can anticipate costs and avoid surprises by mapping out each development phase, from pre-production to post-launch support.

This includes detailing the game’s scope, setting realistic timelines, and budgeting for each component, ensuring a structured approach that minimizes unforeseen expenses.

Follow agile methodology

Implementing an agile methodology allows for iterative development, enabling teams to adapt to changes and address issues as they arise. This approach involves regular sprints and reviews, ensuring the project stays on track and within budget.

Agile practices promote flexibility, allowing teams to pivot quickly in response to new challenges or opportunities. This helps to prevent cost overruns and ensures that indie game dev goals are met efficiently.

Plan for unexpected external costs

It’s essential to anticipate and budget for external costs that might not be immediately apparent. This includes legal licenses, which can vary based on the game’s content and target markets, and marketing expenses, which are crucial for the game’s success.

Allocating a contingency fund for such unexpected costs ensures the project can handle these expenses without derailing the overall budget. Legal compliance and effective marketing strategies are vital for the game’s launch and long-term success.

Ensure efficient human resource management

Efficiently managing the development team can significantly reduce hidden costs. This involves hiring the right talent, ensuring they are adequately trained, and maintaining a productive working environment. Efficient HR practices include clear communication, regular feedback, and providing the necessary tools and resources to the team.

Below are some valuable tips to reduce the game development cost for your indie team.

1. Have a clear financial plan: Knowing your budget upfront and creating a financial plan allows you to make informed decisions about resource allocation and potential funding needs.
2. Choose the right framework: Some development frameworks (like Unity or Unreal Engine) provide the foundation for building your game. Choosing the proper framework depends on your game’s genre, complexity, and your team’s skill set can avoid unnecessary expenses. Consider factors like ease of use, feature set, and community support.
3. Prefer open-source software: Traditional game development tools can be expensive, especially for professional licenses. Open-source alternatives like Unity (with limitations) and Godot offer powerful features for free, significantly reducing your software budget.
4. Implement revenue-share models with freelancers: Hiring full-time staff for specific tasks like art or music can be costly. Revenue-share models allow you to collaborate with freelancers who get paid a percentage of your game’s profits. Doing this initially keeps costs down.
5. Utilize grassroots marketing: Traditional marketing campaigns like TV ads or billboards are expensive for indie studios. Use social media platforms, online communities, and content creation (like trailers and gameplay demos) to generate buzz organically. This is a more cost-effective way to reach potential players.
6. Reduce development time through effective management: The longer the development process, the more resources (time, money) are consumed. Practical project management tools and clear communication within your team can help streamline the development process. Prioritize features, set realistic deadlines, and track progress to avoid scope creep and wasted time.
7. Prototype, then scale: As an indie developer. You are likely to have limited resources. Starting with a more minor, manageable game allows you to gain experience and build a portfolio. Once you’ve established yourself, you can leverage that success to tackle more ambitious projects.
8. Integrating AI: AI advancements also open doors for indie game studios to reduce costs. Tools like ElevenLabs provide AI-generated voice overs, offering high-quality sound design without the traditional costs of hiring professional voice actors. This allows indie teams to save on production costs while creating immersive audio experiences for players. Integrating AI into the development process enables indie game dev teams to optimize their budgets without sacrificing quality.
9. Adopting roles: Another cost-saving strategy involves performing as many roles as possible within your team or individually. Developers like Dale Turner, who created Astronarch for under $250, managed to cut costs by taking on multiple roles themselves. However, this approach can stretch development time, so finding a balance is vital.

Choosing the right partner for your indie game development journey is crucial for bringing your creative vision to life. At Juego Studios, we provide comprehensive game development services tailored to indie game developers and studios.

Why choose Juego Studios?

• Expertise and Experience: With a proven track record in the gaming industry, our talented developers, designers, and artists are well-versed in the latest technologies and game development trends. We understand indie developers’ challenges and are equipped to navigate them effectively.
• End-to-End Services: From concept to launch and beyond, we offer a full suite of game development services, including game design, development, marketing, and post-launch support. Our holistic approach ensures that every aspect of your game is carefully crafted and executed.
• Collaborative Partnership: We believe in building solid relationships with our clients. Our collaborative approach means you’ll be involved at every stage of the development process, ensuring your vision is realized and benefiting from our expertise and insights.
• Cutting-Edge Technology: Leveraging the latest tools and technologies, including game engines like Unity and Unreal Engine, we can create immersive and engaging experiences for players across various platforms.